Eligibility for a broker's or salesperson's license or a time-share salesperson's certificate of registration following a criminal conviction, immunity for employing real estate brokers in certain actions, granting rule-making authority, and providing a penalty. (FE)

reviewing any supplemental information provided by the applicant bearing upon his or her suitability for licensure or registration; and considering various factors that are specified in the bill. The bill provides that the applicant bears the burden of demonstrating his or her suitability for licensure or registration if seeking such a determination under this exception. The prohibition applies to current real estate license and certificate holders as of the next time a real estate license or certificate is renewed; the next deadline for renewing a license or certificate is December 15, 2014. In addition, the bill requires the REEB to revoke a person's real estate license or certificate if the person is convicted of a felony after the bill's effective date. The bill does not modify the law with respect to disqualifications from obtaining real estate licenses or certificates due to convictions for misdemeanors or other offenses.

The bill also authorizes the REEB to, by rule, establish a preapplication procedure. Under the preapplication procedure, a person who does not possess a real estate license or certificate may apply for a determination of whether the person would be disqualified from obtaining a real estate license or certificate due to his or her criminal record without submitting a full application and without paying the fees applicable to applicants. Any determination by the REEB under the preapplication procedure is binding upon the REEB if the person subsequently applies for a real estate license or certificate, unless there is information relevant to the determination that was not available to the REEB at the time of the determination.

The bill also does the following:

1. Requires the REEB to create a form for a person to disclose recent criminal convictions when renewing a real estate license or certificate and, if the REEB establishes a preapplication procedure, a form for a person to disclose criminal convictions under the preapplication procedure.

2. Allows the REEB to assess a forfeiture of $1,000 against a person who submits false information on either form.

3. Prohibits the issuance or renewal of a real estate license or certificate for a person assessed such a forfeiture, if the person has not paid the forfeiture.

4. Allows the REEB to revoke, suspend, or limit the real estate license or certificate of a person who submits false information on either form or who fails to pay a forfeiture imposed by the REEB for doing so.

Immunity for employing brokers in certain actions Under current law, each broker must supervise, and is responsible for, the brokerage services provided on behalf of the broker by any broker, salesperson, or time-share salesperson who is an employee of the broker.

This bill provides that an employing broker that hires an individual who has a real estate license or certificate and who has committed a crime under the laws of this state or another wrongful act may not be held civilly liable for hiring that individual in a negligent hiring claim if, regardless of whether the employing broker conducted its own investigation, the employing broker relied on the investigations conducted by the Department of Safety and Professional Services or on a determination by the REEB. A negligent hiring claim is an action brought under the common law under which an employer may be held liable for failing to exercise reasonable care when hiring an employee, such as by failing to conduct an adequate background investigation of the employee, if the employee commits a wrongful act.